An independent, unofficial guide to the GARP Financial Risk Manager (FRM) exam — not affiliated with or endorsed by the Global Association of Risk Professionals.
Part I — Foundations · Quant · Markets & Products · Valuation & Risk Models Part II — Market · Credit · Operational · Liquidity & Treasury · Investment Mgmt · Current Issues
| Domain | Part | Official weight | Focus |
|---|---|---|---|
| Foundations of Risk Management | I | 20% | Risk governance, the three lines of defense, ERM, and case studies of historical risk-management failures. |
| Quantitative Analysis | I | 20% | Probability, statistics, regression, volatility modeling, and time-series concepts applied to risk. |
| Financial Markets and Products | I | 30% | Structure and mechanics of equities, fixed income, derivatives, and other traded instruments. |
| Valuation and Risk Models | I | 30% | VaR methodologies, duration/convexity, options pricing and Greeks, and model validation. |
| Market Risk Measurement and Management | II | 20% | VaR backtesting, stress testing, and market-risk capital frameworks. |
| Credit Risk Measurement and Management | II | 20% | Expected loss, credit spreads, counterparty exposure, and credit portfolio models. |
| Operational Risk and Resilience | II | 20% | Loss-event frameworks, model risk, third-party risk, and operational resilience. |
| Liquidity and Treasury Risk Measurement and Management | II | 15% | LCR/NSFR mechanics, funding concentration, and contingency funding planning. |
| Risk Management and Investment Management | II | 15% | Portfolio construction, hedge fund risk, and the application of risk tools to asset management. |
| Current Issues in Financial Markets | II | 10% | Recent risk themes GARP rotates each cycle — climate risk, AI/model governance, and similar topics. |
The real Part I exam runs 100 questions over 240 minutes; Part II runs 80 questions over the same 240 minutes. This platform's mock exams are focused 10-question testlets, one per domain — timed at the same roughly 2.4-minutes-per-question pace as the real thing, without pretending to replicate a full 4-hour sitting.
GARP does not publish a percent-correct pass cutoff for either part. Results are reported as pass/fail only, with a quartile-based performance breakdown by topic rather than a raw score. This platform's percent scores are a study signal for tracking progress, not a prediction of a real pass/fail outcome.